Ivan Harris, Eduserv - G-Cloud: The Value-Commodity Paradox?

1. G Cloud Uk Meetup
Ivan Harris, Eduserv - G-Cloud: The Value-Commodity
Paradox?

2. G-Cloud:
The Value-Commodity Paradox?
G-Cloud Meet Up, London
Ivan Harris, Business Manager - Cloud Services
2nd October 2013

3. IT for public good
Commercial in Confidence
Copyright Eduserv 2013
All Rights Reserved
Value vs. Commodity
Co-created
Value
Solution
Offer
Component
Commoditisation
Value
G-Cloud
Needs
• More commodity solutions
• Flexibility and freedom
• Ready and easy to use
• Low cost
• Competitive marketplace
• 50% cloud-based services /
50% SMEs supply target
G-Cloud Strategy
• 36%: SME scale and capacity
• 29%: Nervous about working
with new suppliers
• 32%: Difficult to split services
into the CloudStore
constituents
• 24%: Lack of trust and
relationships with suppliers
Eduserv Civil Servant Survey

4. IT for public good
Commercial in Confidence
Copyright Eduserv 2013
All Rights Reserved
It’s a Matter of Trust!
• Purchasers need the trusted advice
of expert suppliers to create value-
added solutions
• Suppliers need to understand the
purchaser’s business drivers and
requirements
• Business trust is built on:
– Shared values
– Predictability
– Success
– Mutual benefit
• Trust requires relationship building
• Agile delivery requires trust
• There’s no need to sacrifice value!
• A success story…
Co-created
Value
Solution
Offer
Component
Co-created
Value
Solution
Offer
Component
Plan A Plan B
$$$

5. IT for public good
Commercial in Confidence
Copyright Eduserv 2013
All Rights Reserved
CloudStore and SME Spending Trends
Lot Mar 2013 Aug 2013
1 (IaaS) 0.6 (3.4%) 1.3 (3.5%)
2 (Paas) 0.3 (1.6%) 0.4 (1.1%)
3 (SaaS) 5.1 (28.0%) 7.8 (20.7%)
4 (Svcs) 12.2 (67.0%) 28.0 (74.7%)
Total Value 18.2 37.5
Transactions Mar 2013 Aug 2013
Transactions 909 2080 (+129%)
Average Value £20.2K £18K (-11%)
Num Customers 159 227 (+43%)
Num Suppliers 108 151 (+40%)G-Cloud III
May 2013
G-Cloud I
Feb 2012
G-Cloud II
Oct 2012
G-Cloud 4
Nov 2013?
• By 2015, 50% of new central government IT spend to be on cloud-based services and 50% to SMEs
• Overall government SME spend has increased from 6.5% in 2009/10 to 10.5% in 2012/13
• £11.3Bn public sector SITS market, £10.4Bn to top 20 providers
• 2011/12 to 2012/13 SME spend increase: Direct £4.4Bn to £4.5Bn, Indirect £2.9Bn to £4.0Bn
• £11.3M of CloudStore spend in year 1 versus £6.5Bn of Central Government spend (~0.2%)
• Data shows exponential growth in CloudStore purchases

6. IT for public good
Commercial in Confidence
Copyright Eduserv 2013
All Rights Reserved
Summary
• CloudStore and SME spend are
trending in the right direction
• Combine the ease of use and
cost savings of CloudStore with
relationships
• Blend large SIs with SMEs for
expertise, innovation and cost
savings
• Continue to advocate large
SI/SME coopertition
• Find SMEs who can deliver co-
created value directly
ValueTrustCommodity

7. Thank you!
Ivan Harris
ivan.harris@eduserv.org.uk
(07925) 224284